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3WEST BUSINESS thewest.com.auMonday, August 26, 2013

the globe. Unity also has a crisisservices division that specialisesin negotiating the release of kid-napping victims. It says it hasdealt with 1340 kidnapping andextortion cases in 70 countries.

In Perth to speak on kidnap-ping trends at tomorrow’s forum organised by research in-stitute Future Directions Inter-national, Mr Curtis said inci-dents in Africa are on the rise.

“In the 1990s, more than 90 percent of incidents were in LatinAmerica. Now we’re seeing about50 per cent of incidents in Latin

An international security experthas warned Australian com-panies operating in Africa to payclose attention to their securityarrangements, saying kidnap-ping and ransom incidents are onthe rise across the continent.

A veteran of Australia’s SpecialAir Service Regiment, Tim Cur-tis, is now the managing directorof international operations forUnity Resources Group, whichprovides risk advisory and secur-ity services for companies across

America, and there’s been a hugegeographic shift across into Africa, and now it’s snaking intoAsia,” he said.

Mr Curtis said Nigeria now has25 per cent of the world’s reportedkidnapping incidents, and it is anemerging problem in Kenya, Mozambique and Mali — all hostto Australian resource compa-nies. Unity estimates that about200 kidnappings of foreign work-ers and visitors were reported inAfrica over the past eightmonths.

“I would suggest that many

companies working in those mar-kets are unlikely to have specificmitigating measures,” he said.

“Those measures would in-clude everything from risk man-agement plans, to traveller track-ing, to making sure there arestandard operating proceduresfor security.”

Now a multi-billion dollarglobal problem, Mr Curtis saidforeign nationals were the targetof about 10 per cent of kidnappingattempts, with criminals target-ing business people and aid work-ers, as well as rich travellers. He

said incidents ranged from sim-ple street-level crime, such asholding a person and forcingthem to make multiple with-drawals from an ATM, to oper-ations by organised crime gangsthat put in long hours of surveil-lance before making a snatch.

Mr Curtis said 90 per cent ofkidnapping victims were eventu-ally released, with a ransom paidin 70 per cent of cases. “There’sonly one buyer and one seller. As long as you can meet in themiddle on terms, you’re going toget a release,” he said.

Kidnap, ransom demands rise FOREIGNERS WARNED ON AFRICA

■ Nick Evans

companies have already fully opt-ed in, with 575 registered so far.After the release of $85.4 millionin quarantined bonds, companieshave paid in $2.2 million to theMRF, out of a projected $40 mil-lion in the first year.

The fund is well supported bythe industry as it may delivercash back to juniors at a criticaltime. However, it is not withoutcritics. Kalgoorlie’s “micro-min-ers” have complained they will beliable for payments where they

previously were able to guaran-tee rehabilitation with a surety.Some have suggested the bondsystem could be more cheaply re-placed with insurance and greengroups have criticised the MRFfor potentially widening theState’s liability for abandonedmines, particularly in its earlyyears.

Fuel for that last argumentmay have been added by recentevents in the struggling juniorgold sector, particularly throughthe collapse of Reed Resourcessubsidiary GMK Exploration,

which operated the failed Meekatharra gold mine. Reedwas one of the early supporters ofthe MRF, and last month an-nounced it had opted in, withabout $3 million in environmen-tal performance bonds released.

Within five weeks of that announcement, its operatingsubsidiary was placed in volun-tary administration.

The timing is unfortunate.Clearly the $3 million freed upwas not enough to save the mine.The fact the figure is larger thanthe total so far paid into the MRF

will raise the hackles of themining industry’s critics, whowill question the level of scrutinygiven to applicants given thescheme’s major bar is that con-tributors are not already in administration or liquidation.

If a buyer is not found for Meek-atharra — and the rehabilitationliability transferred — and GMKdoes not have the cash to carry itout its mine closure plan, Meek-atharra could also become thefirst new liability of the fund.

MINING REHABILITATION FUND

84 Number of companies opting in

1283 Number of tenements covered

$85.4m Value of environmental bonds released back to companies

$6m Value of environment bonds “called in” to Department of Mines and Petroleum before July 2013

$2.2m Amount paid into Mining Rehabilitation Fund

10,000+Number of abandoned mine sites across WA

Environmental bond scheme faces first test

.................................................................................nick.evans@wanews.com.au

.................................................................................� FROM P1

BHP Billiton has declared it willpush ahead with plans for itsCanadian potash project, despitesome shareholder misgivings, be-cause of the prospect of strong re-turns on its investment.

BHP chief executive AndrewMackenzie, speaking to theABC’s Inside Business programyesterday, said: “We have the bestundeveloped greenfield mine on offer to the world and what we aredoing, we will be prepared to re-spond very quickly to the marketwhen it’s needed.”

Russia’s Uralkali, the biggestpotash producer quit a venturethat controlled 43 per cent ofglobal exports, saying it thoughtprices could fall by as much as 25per cent.

BHP last week said it was seek-ing partners for its CanadianJansen project after approvingspending of $2.6 billion.

BlackRock’s Evy Hambro, whomanages the $US7 billion WorldMining Fund, said this monththat BHP’s plan for Jansen didnot make sense after Uralkali’sdecision.

Mr Mackenzie said: “We willtake our time about pushing thebutton of the development of amajor mine that will absolutelyreflect our ability to afford it butmore importantly, the ability toearn strong returns for our shareholders.”

BHP last week posted a 6.9 percent fall in second-half profit to$6.7 billion as slower globalgrowth undermined demand. Bloomberg

■ Nichola SaminatherSydney

BHP goes ahead with potash plan

Australind’s Parkfield Primary is one of eightschools to benefit from The West Australian andiiNet joining forces to boost the State’s educationsystem.

The Schools’ Wish List project saw schoolsacross WA given the chance to win a share of$20,000 by collecting newspaper coupons.

Parkfield Primary won $5000 after collectingand submitting the most coupons.

iiNet executive Steve Dalby was at the schoollast week to present the cheque and a new iPad tothe students. “We are committed to supportingchildren and local schools — the internet hashelped millions of Australians learn more aboutthe world, so it’s really just part of our DNA tohelp where we can,” Mr Dalby said.

“iiNet staff have been out reading and mentor-ing kids at Kelmscott, Swan Valley and Cecil An-drews Senior High Schools since 2008. As a com-pany committed to education, we jumped at thechance to help deliver iPads to Parkfield PrimarySchool.” Online learning: iiNet’s Stephen Dalby with Parkfield Primary School’s grade twos and teacher Katheryn Perks.

The West, iiNet support smarter WA students■ Ben Harvey

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